Financial Milestones

When I look back on my journey with my finances, there are specific moments in time that stand out. I consider these my financial milestones.

First, I have milestones that I don’t enjoy remembering: the day I totaled my husband’s car, which I still consider the first day of my financial awakening. I also distinctly remember the feeling of dread that gripped me when I read the letter telling me the final tally of my student loans. Of course, I also can’t forget the nerve-wracking weeks of navigating the scary waters of car shopping as a recent graduate, culminating in another $12,000 of debt.

In October 2014 I hit the milestone of accumulating $25,000 before age 25. Saving this much cash seemed like a big accomplishment at the time, and now, just five months later, I’ve hit the $30,000 net worth mark.

Taking Advantage of Windfall Money to Boost Your Net Worth

There are two main sources of income that allowed me to boost my net worth $5,000 in five months: my income tax return and my freelance income. I consider both of these items windfall money since I’m not guaranteed to receive them every year or month. I put 100% of my income tax return into savings. I also put as much of my freelance income as possible towards savings, with the occasional $100 held back here and there to use for fun money.

Using my windfall money to help me reach my goals is how I stay motivated to keep striving. This money helps me reach my goals faster, which helps me stay excited about my money. If I were just making the same transfers every single week, I’d get bored, and fast.

The Next Financial Milestone: $35,000 Net Worth

I’m going to continue to increase my net worth as much as possible this year, with a goal of hitting $35,000 before the year is over. I’m pretty confident I can accomplish this with some hard work, some hustling, and a little more windfall money.

Stay Up To Date

Congratulations on making it to $30,000 in savings so early in life! That’s incredible. It’s clear that the good financial milestones are outweighing the negative ones in your life.

Not counting my savings for future spending (i.e. my travel fund, big ticket items and charity accounts), I’m just over $14,000 now between my growing emergency fund and RRSP. My goal is to reach $29,000 between those two accounts by next New Year’s day.

I did just have to use $1,375 from my emergency fund to pay for a last-minute trip to Poland to go see my grandmother after she had a health crisis, so I’m not 100% sure if I’m going to reach the goal amount for my emergency fund by then, but I’m sure going to try!

Congrats! I haven’t had any milestones really as of late but hoping to have another loan paid off in Sept/October which will feel great. It’s the most nagging loan so it will feel especially sweet. We’re also going to Florida for a long weekend early next year and already have half saved which is a nice feeling. Hoping for a positive networth by next year (i include my house in networth calculation).

Congrats! It is impressive that you are doing so well so young!
I guess my recent milestone was reaching my goal for the worth of my RRSP for this year already, thanks to the markets and the transfer of a pension from a past employer that I had forgotten about… I love forgotten money… though I suppose that is a sign that I’m not very financially responsible… Anyway, I guess I’ll have to revisit that goal and make it tougher.

Congrats! You´re a rockstar! My only milestone so far was paying off my first of four maxed out credit cards. (Ugh.) Even though it had the lowest limit, it had the highest interest rate. I haven´t closed the account, but I got so much JOY out of tossing that guy in the shredder, I think I´ll never forget it! 🙂

Congrats Chela! That is a huge milestone. One down, three to go! I know you can do it.

Alicia

That’s great progress. You and the husband are killing it in the financial department 🙂

As for my recent milestones, I went from five figures of debt to under four. At the same time I’ve (nearly) increased my retirement savings from 0 to $10,000 in 11 months. Currently sitting at $9950, and just waiting to cross over the five digit retirement savings threshold next month. (Remember, I have a great (!) mandatory company match, so that isn’t all me, but I’m taking advantage of the free money)